Human Resource Management (HRM) Issues in Mobile Telecom Industry: a Comparative Study on Public and Private Mobile Operators in Bangladesh Md
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Society & Change Vol. VI, No. 2, April-June 2012 ISSN :1997-1052 (Print), 227-202X (Online) Human Resource Management (HRM) Issues in Mobile Telecom Industry: A Comparative Study on Public and Private Mobile Operators in Bangladesh Md. Akram Hossain1 Abstract Cellular telephone system is such an amazing mode of communication all over the world that produced unexpected results in the socio-economic development of the developing countries like Bangladesh. As a whole, the mobile market got dramatic expansion and mobile phone became a common mode of communication in Bangladesh. The contribution of the telecom service sector to the GDP is 3.54%2 and the mobile phone penetration rate is 56%3. At present, Grameenphone has an experience of 15 years of operation, while Teletalk is nearly to complete 7 years of operation in the market. An organization’s advancement and profitability depends on both the factors inside and outside the organization. As the market is vibrant and expanding, the operational environment is fully supported by the government and the investment and progress is also satisfactory, the success of mobile operators in Bangladesh mostly depends on the inner qualities of the companies. Modern management theories assume that the productivity and efficiency of an organization are very closely related to the treatment the employees get while working in the organization. The Human Resource Development Policy is the determinant of the outcome of all the policies and strategies in an organization, especially in case of operating in a service sector. If the HR policy is not designed to ensure the employees’ minimum benefit and maximum scope of flourishing their potentials, the marketing, finance or technological strategies may not produce the expected result. And this is the key point of the comparison made on the HR policies of two mobile 1 MSS in 2008, Mphil 2010-2011 (Continue), Department of Public Administra-tion, University of Dhaka. Research Associate, Master in Public Policy and Governance (MPPG) Program, Department of GCE, North South University. 2 Bangladesh Economic Survey, 2011 3 http://www.budde.com.au/Research/Bangladesh-Telecoms-Mobile-Broadband and- Forecasts.html A Comparative Study on Public and Private Mobile Operators in Bangladesh phone operators in Bangladesh – Grameenphone and Teletalk, keeping special focus on the issues like: training, human resource development policy, employment benefits, health & safety issue, equal opportunities at workplace, voice of employees or employee association, CSR programs, etc. The article also depicts a comprehensive picture on present status of mobile operators and ever rising subscribers in Bangladesh. Keywords: Bangladesh, Mobile phone, Grameenphone, Teletalk, Human Resource Management Introduction In spite of being one of the poorest, most densely populated, least developed countries in the world, Bangladesh has revealed a way to grow its telecommunications sector. Following a number of years of steady growth, starting from a very low base, the total number of mobile phone active subscribers has reached 85.455 million or more than 50% penetration rate at the end of December 2011 (BTRC) while the number was 68.645 million at the end of 2010 i.e. 16.81(24.48%) million subscribers are newly added last year (2011). Enhanced use of mobile phones can help developing countries like Bangladesh to fight against poverty and empower poor men and women. Bangladesh has been highly lauded for its success in the mobile phone coverage in terms of population and territory and for a relatively faster penetration and revolutionary changes to lower call-charges than many countries. However, having this substantial success in flourishing the telecom sector in Bangladesh, the present condition of the mobile operators in terms of Human Resources Management (HRM) issues is almost frustrating. By HRM issues, here, I mean some very important problems or necessities that any organization should mitigate in a planned and systematic way so that people working in the organization can be made dedicated for high quality service delivery to the customers and clients and thus make a corridor to reach the organizational goals and objectives. Theoretically, HRM is the strategic and coherent approach to the management of an organization's most valued assets - the people working there, who individually and collectively contribute to the achievement of the objectives of the business. For the last 20 years, empirical work has paid particular attention to the link between the practice of HRM and organisational performance, evident in improved employee commitment, lower levels of absenteeism and turnover, higher levels of skills and therefore higher productivity, enhanced quality and efficiency. 47 Society & Change Vol. VI, No. 2, April-June 2012 An organization‟s advancement and profitability depends on both the factors inside and outside the organization. As the mobile phone market is vibrant and expanding, the operational environment is fully supported by the government and the investment and progress of recovery record is also satisfactory, the success mostly depends on the inner qualities of the companies. Modern management theories assume that the productivity and efficiency of an organization are very closely related to the treatment the employees get while working in the organization. The Human Resource Development Policy, commonly known as the HR policy, is the determinant of the outcome of all the policies and strategies in an organization, especially in case of operating in a service sector. If the HR policy is not designed ensuring the employees‟ minimum benefit and maximum scope of flourishing their potentials, the marketing, finance or technological strategies may not produce the expected result. In this regard, the organizations in Bangladesh have many limitations especially those as the public entity. Though mobile telecom sector is booming up rapidly in Bangladesh as mobile phones have become a fundamental part of personal communication at all level of the society during the past ten years, but the HRM issues and practices have been devoted little specific attention. Some private mobile companies try very enthusiastically to address the problems related to work and personnel, but there is extreme dissatisfaction among the employees in public mobile operator, Teletalk, regarding the working environment. Thematically this paper can be divided into five parts. In the first part a brief introduction along with elaboration of the basic concept of HRM and an outline of the study methodology have been given. History and present status of mobile operators in Bangladesh have been discussed in the second part. In the third part some articles and clauses of ILO convention as well as Bangladesh Labour Law which are relevant to this study have been presented in brief. Comparative discussion on HRM issues between public and private mobile operator, the main focus of this paper, has been provided in the fourth part, and lastly based on the findings of the study a conclusion has been drawn in the fifth part of this paper. Objectives & Methodologies of the Study 48 A Comparative Study on Public and Private Mobile Operators in Bangladesh This study was conducted on four mobile operators4 in Bangladesh regarding different HRM issues as instructed through the Term of Reference (ToR) of „UNI Global Union’5. And this article is developed on the basis of the findings, observations and experiences gathered during the study. The major focus of the study was to understand and investigate the existing mobile market in Bangladesh with an emphasis on various issues related to the comparative working environment in the companies. Interview, literature review, websites and other secondary sources are the major part of the study. A set of questionnaire and checklist were also prepared to collect necessary data and information from different mobile service providers in Bangladesh. Through predesigned questionnaire, face to face interview was taken with different level of officials, and some interview and information were collected through email communication also. Mobile Telecom market in Bangladesh The history of mobile phone is not very new in this poor country as it has already passed two decades starting from the early part of 1990s. The beginning of mobile phone has been pretty late in our country compared to that of the neighboring and developed nations, but in the last 3-4 years an explosive growth and the earth shivering changes yielded up in the mobile phone sector in Bangladesh. Serial* Name Issue of Licence Date of Commencement 11-08-1993 (HBTL) First Citycell 26-07-1989 1996 (Citycell Digital) Second Grameenphone 11-11-1996 26-03-1997 11-08-1997 (Aktel) Third Robi 11-11-1996 28-03-2010 (Robi) 03-09-1997 (Sheba) Forth Banglalink 11-11-1996 Feb, 2005 (Banglalink) Fifth Teletalk 01-09-2004 31-03-2005 10-05-2007 (Warid) Sixth Airtel 20-12-2005 20-12-2010 (Airtel) * Serial is made based on the time of commencement. Source: Based on information available on BTRC website. 4 The four mobile operators are Grameenphone Ltd, Teletalk Bangladesh Ltd, Banglalink Ltd and Airtel Ltd. 5 UNI Global Union is a Switzerland based organization representing hundreds of trade unions all over the world. Its more than 900 affiliated unions in 140 countries have 20 million members. 49 Society & Change Vol. VI, No. 2, April-June 2012 In 1989 Bangladesh Telecom Limited (BTL) was awarded a license to operate cellular and then in 1990